- SoftBank sold its 32.1 million Nvidia shares for $5.83 billion
- The sale funded a $22.5 billion investment in OpenAI and AI tools.
- The stake sales were part of SoftBank’s broader “asset monetization” strategy.
SoftBank’s decision to sell all of its Nvidia shares has caught the attention of investors, who are already wary of AI’s overheated valuations.
The Japanese conglomerate sold all of its 32.1 million shares for about $5.83 billion, ending a position that dates back to Nvidia’s initial rise as the chip industry’s leading artificial intelligence supplier.
Nvidia shares fell about 2% after the sale, although analysts say the move may have less to do with doubts about Nvidia and more to do with SoftBank’s urgent need for liquidity.
A strategic move or something more?
Rolf Bulk, an analyst at New Street Research, said the sale “should not be seen” as a lack of confidence in Nvidia but rather as a practical decision.
SoftBank reportedly needs at least $30.5 billion for new investments in the final quarter of the year, with $22.5 billion allocated to OpenAI and another $6.5 billion to Ampere.
The total represents more investment in one quarter than in the previous two years combined.
“We want to offer many investment opportunities to investors, while still being able to maintain financial strength,” SoftBank Chief Financial Officer Yoshimitsu Goto said during an investor presentation.
“So through those options and tools we make sure we’re ready to receive funding in a very secure way.”
The company added that the stake sale was part of its broader “asset monetization” strategy.
This suggests a strategic shift toward broader AI projects rather than an exit from the AI space itself.
Former Intel CEO Pat Gelsinger warned that the AI sector is in bubble territory, although he expects any correction to unfold gradually.
Additionally, recent financial disclosures show that Michael Burry’s Scion Asset Management has opened large options positions tied to Nvidia and Palantir.
The face value of these positions exceeds $1 billion, indicating an apparent bet on downside risk in the current AI rally.
But SoftBank also sold part of its stake in T-Mobile for $9.17 billion and raised funds through a margin loan on its ARM Holdings shares.
Insiders say these asset sales are simply “cash sources” for new acquisitions, including ABB’s robotics business.
These sales and SoftBank’s $19 billion gain this quarter from the Vision Fund bolstered its growing portfolio of AI-focused holdings.
“The reason we were able to get this result is because in September last year, it was the first time we invested in OpenAI,” said SoftBank’s Goto.
SoftBank remains deeply tied to Nvidia through projects like the $500 billion Stargate data center initiative, which still relies on Nvidia’s GPUs and AI tools.
Via CNBC
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